Japan wholesale price growth slows to 2.4 percent as fuel costs retreat

Japan wholesale inflation slowed to 2.4 percent in December as fuel costs fell. However, flat import prices suggest a weak yen could sustain future price pressures.

Insights:
Wholesale inflation in Japan JPJPmoderated at the end of the year as global energy prices retreated, providing a complex backdrop for the upcoming central bank policy review. The corporate goods price index, which measures the costs companies charge each other for goods and services, rose 2.4 percent in December compared to a year earlier. This result matched median market forecasts but marked a deceleration from the revised 2.7 percent annual increase recorded in November. The slowdown was primarily attributed to sliding fuel costs and lower prices for Crude Oil , which helped offset broader price increases in other sectors.
A man buys fish at a market in Tokyo, Japan, March 3, 2023. REUTERS/Androniki Christodoulou
A man buys fish at a market in Tokyo, Japan, March 3, 2023. REUTERS/Androniki Christodoulou
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